Continue your plan
Useful next calculations
Rates & sources
SDLT/LTT/LBTT bands vary between England, Wales, Scotland and Northern Ireland. Use the appropriate calculator.
Source: HMRC / Welsh Revenue / Revenue Scotland — check the linked guidance and any live quote before acting.
When to use this calculator
- Before buying, renting, refinancing or reviewing a property investment.
- When you want to compare cash flow, tax, yield or ownership costs.
- When you need a fast estimate before speaking to an agent, lender or adviser.
- When you want to see how a rate or price change moves the result.
A realistic UK planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
| Input | Value |
|---|---|
| Property Price (£) | £250,000 |
| Monthly Rent (£) | 6 |
| Annual Expenses (£) | 4000 |
| Hold Period (Years) | 25 years |
After entering these figures, review annual profit, total profit (10y) and roi together rather than in isolation. Then rerun the tool with one input adjusted.
How to read your results
Annual Profit
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Total Profit (10y)
The headline outcome of this calculation. It is most useful when read alongside the supporting metrics rather than in isolation.
ROI
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Method & assumptionsAuthoritative sources
This calculator estimates the return on investment from a residential buy-to-let property in the UK. It calculates both gross and net rental yield, annual cash flow after mortgage payments and operating expenses, and return on equity based on the capital you have actually invested. Inputs include purchase price, deposit, mortgage rate, term, monthly rent, letting agent fees, insurance, and a maintenance and void allowance. The calculator applies the Section 24 mortgage interest restriction when you specify personal ownership and your income tax band. It does not model capital appreciation, capital gains tax on sale, or the tax treatment of limited company ownership. Results are indicative estimates to help compare potential investment opportunities and should not replace advice from a qualified financial adviser or accountant.
Common mistakes
- !Comparing rent and ownership costs without including taxes, fees and maintenance.
- !Using purchase price alone without testing financing or vacancy assumptions.
- !Relying on yield or growth in isolation instead of reviewing the full property case.
- !Using the wrong national transaction-tax calculator for the purchase location.
What to do next
- Run a second scenario with a higher rate or lower rental yield.
- Compare the result with a buy-versus-rent or mortgage calculator before making an offer.
- Use the matching national transaction-tax calculator for the purchase location.
- Note the key figures to share with your solicitor or lender.
Frequently asked
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